Calicut Garments & Uniforms Vs Union of India (Kerala High Court)
The Kerala High Court considered a challenge to an order denying input tax credit claimed for April 2018 to March 2019 on the ground that returns were filed beyond the period prescribed under Section 16(4) of the CGST Act. The petitioner relied on Section 16(5), under which taxpayers filing returns within the specified cut-off date of 30.11.2021 would be entitled to ITC. The Court found that the petitioner had filed the relevant returns between 24.05.2018 and 27.10.2019, all before the Section 16(5) cut-off date. Accordingly, the petitioner was entitled to the benefit of Section 16(5). The Court quashed Ext.P1 and directed the fourth respondent to reconsider the matter and grant ITC under Section 16(5), if the petitioner was otherwise entitled.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner is a registered tax payer under the provisions of the CGST/KSGST Act. The grievance of the petitioner is against Ext.P1 order passed by the 4th respondent, by which the input tax credit claimed by the petitioner pertaining to the months of April 2018 to March 2019 was declined on the reason that the petitioner failed to submit the returns within the periods stipulated in Section 16(4) of the CGST Act. The challenge raised against Ext.P1 is based Section 16(5) of the CGST Act, as per which, it is provided that, in cases where, the tax payer has submitted the returns within the cut off dated contemplated therein, which is 30.11.2021, such tax payer would be entitled to get the input tax credit.
2. In this case, it is discernible from the records that, the returns for the relevant months were submitted by the petitioner during the period from 24.05.2018 to 27.10.2019. Thus, all the returns have been submitted within the cut off date contemplated under the above said provision and therefore, the petitioner is entitled to get the input tax credit. In such circumstances, an interference is required.
Accordingly, this writ petition is disposed of quashing Ext.P1 with a direction to the 4th respondent to reconsider the matter and to grant the benefit of input tax credit on the strength of Section 16(5) of the CGST Act, if the petitioner is otherwise entitled.
